Martin the Kiteboy
Weaksauce
- Joined
- Nov 23, 2020
- Messages
- 111
Car and Driver: Microchip Shortage Delays Auto Production
A lot of this is what we have heard already, but it is interesting seeing that the shortages really are spread wide and that it is not just us in the Consumer Electronics Hardware sector feeling the pinch.
A convergence of macroeconomic and political events led to the semiconductor shortage, Gartner analyst Gupta said. In the spring, demand for cars fell. In response, automakers cut orders for microchips. At the same time, the demand for consumer electronics—notably the PlayStation 5 and Xbox Series X, as well as laptops and desktops for working from home—skyrocketed. Microchip suppliers adjusted production accordingly, and now that car demand has recovered much more quickly than expected, suppliers haven't been ready to respond.
Additionally, several moves by the Trump administration in the U.S.-China trade war resulted in fewer semiconductors coming into the marketplace, ultimately exacerbating the supply glut, Gupta said. And then, lastly, the older microchips that the auto industry relies on—commonly referred to as eight-inch wafers—can't be produced quickly enough by automotive chip manufacturers such as NXP Semiconductors and Infineon due to manufacturing limitations.
A lot of this is what we have heard already, but it is interesting seeing that the shortages really are spread wide and that it is not just us in the Consumer Electronics Hardware sector feeling the pinch.